With this acquisition, Conestoga will leverage SAFFiRE's exclusive license to Deacetylation and Mechanical Refining pretreatment technology developed at the US Department of Energy's National Renewable Energy Lab to convert corn stover, a widely available agricultural by-product in the US, into ethanol with a carbon intensity score less than negative 100.
SAFFiRE's pilot production facility will be co-located at Conestoga's Arkalon Energy plant in Liberal, Kansas, and is expected to be operational in 2026. Conestoga will advance plans for commercial-scale production facilities based on efficiencies gained at the pilot facility.
SAFFiRE's proprietary production process converts a variety of abundant agricultural feedstocks into low-carbon intermediates for multiple end products, including low carbon ethanol used for SAF production. The company's DMR technology operates at low temperatures and atmospheric pressure using standard industry equipment, delivering high sugar yields with reduced enzyme requirements while avoiding the operational challenges of traditional cellulosic biofuel production methods.
“Sustainable aviation fuel represents a multi-billion-dollar market opportunity, and this acquisition positions Conestoga at the leading edge of efforts to bridge the critical supply-demand gap facing the aviation industry while creating transformative opportunities for American agriculture," said Tom Willis, CEO of Conestoga Energy.
In addition to all IP and existing technologies, key employees will be transitioning to Conestoga as part of the acquisition, including Chief Technology Officer Marykate O'Brien and Nitin Kolhapure, Director of Engineering.
The announcement comes on the heels of Conestoga's recent completion of drilling operations for its first Class VI well, a major milestone in the Company's carbon capture, utilization, and sequestration (CCUS) strategy. Located near the Bonanza BioEnergy ethanol plant in Garden City, Kansas, will serve as the cornerstone of Conestoga's initiative to permanently store carbon dioxide emissions generated during the ethanol production process.
